The U.S. Department of Labor has suspended the gig worker regulations from the Biden era.

The U.S. Department of Labor will no longer enforce a regulation from the Biden era that made it more difficult for companies to hire independent contractors, and the department is currently working to rescind this regulation. The announcement was made on May 1 in an enforcement guidance document, marking the implementation of plans to withdraw the regulation, which the Trump administration had previously indicated would be rescinded in response to pending lawsuits against the policy. The Labor Department stated: "Instruct agency investigators not to apply the analysis established in 2024 to current enforcement matters. This approach provides clearer guidance for businesses and workers as they navigate modern work arrangements while addressing legal and regulatory issues." This decision is a significant victory for business groups opposing the regulation. They urged the government to expedite the repeal of the regulation, arguing that the agency has placed businesses in a difficult position while the regulation remains in effect.